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Blockchain.com Shutters Asset Management Subsidiary Amid Crypto Winter and Industry Turmoil – Bitcoin News
Blockchain.com is shutting down its Blockchain.com Asset Management subsidiary, according to reports and a filing showing its name struck off the UK companies’ registry. A spokesperson for the company cited worsening “macroeconomic conditions” and the “crypto winter” as some of the reasons for halting the institutional business.
The impact of crypto winter on the cryptocurrency industry
Over the past two days, the downward pressure of the crypto winter looks set to continue, as the global crypto market capitalization has fallen 6.82% in the past day to $931 billion. In addition, there has been a contagion of failing crypto firms and bankruptcies across the industry, as well as significant layoffs, with no firm appearing to be spared. On Friday, reports detailed that Blockchain.com is shutting down its London-based subsidiary, Blockchain.com Asset Management (BCAM), and market observers noted that the firm has been delisted from the UK companies’ registry.
A spokesperson for the company has spoken to Emily Nicollea Bloomberg News correspondent who was first to report on the news. “Scoop: [Blockchain.com] has suspended its asset management arm and moved to close the unit exactly 11 months after it was launched. At the time, the firm cut hundreds of jobs and saw its valuation potentially shrink to a fraction of its previous $14 [billion in] size,” Nicolle tweeted. Nicolle reached out to Blockchain.com, and a spokesperson provided comment on the BCAM situation.
“Blockchain.com Asset Management launched in April 2022, shortly before macroeconomic conditions deteriorated rapidly,” a spokesperson told Nicolle by email. “As the ‘crypto winter’ now approaches the one-year mark, we made the business decision to cease operations of this institutional product.” BCAM was formed through a partnership between Blockchain.com and Altis Partners. When BCAM was announced, it was intended to attract high net worth individuals, institutional investors and family offices.
What do you think the future holds for cryptocurrency companies amid the ongoing challenges facing the industry, such as the crypto winter and increased regulation? Share your thoughts in the comments section below.
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